Solving Business Problem with Data Mining Approach

A World Full of Data

So much data can be collected along the way

Knowledge Discovery from Data

Data mining is the process of discovering interesting patterns and knowledge from large amounts of data (Han et al., 2012)

Utilizing Data

Global Covid-19 Projections

Descriptive Analytics

  • How much sales generated last month?
  • What is the top product sold?
  • What is the least profitable product?
  • What is the average spending of a customer?

Predictive Analytics

  • How many demand for product X in the next 6 months?
  • What drives the customer to buy more products?
  • If customer buy product Y, what other items that most likely will be bought?
  • Will customer A churn to the competitor?

Prescriptive Analytics

  • What is the best discount value to increase sales for product X?
  • What is the best route to reduce cost of deliveries?
  • What can be done to reduce the customer churn?

Other Use Case

CRISP-DM Methodology

Cross-Industry Standard Process for Data Mining

Click here to see the official document

Business Understanding

Define what you want to accomplish and define the reasons for wanting to achieve this goal.

Deliverable

  • Background/Business Problem
  • Business Goals and KPI
  • Data Mining Goals and KPI

Data Understanding

Gather, describe and explore the data to make sure it fits the business goal

Deliverable

  • Data Description
  • Data Exploration Report
  • Data Quality Report

Data Preparation

Preparing data for further analysis

Deliverable

  • Data Preparation Steps
  • Final Data for Modeling

Modeling

Finding pattern and do prediction

Deliverable

  • Modeling Technique and Assumption
  • Model Description
  • Model Evaluation

Evaluation

Does the model solve the business problem?

Deliverable

  • Model business assessment
  • Review of the overall process
  • Possible action and final decision

Deployment

Release the model into production

Deliverable

  • Deployment plan
  • Monitoring and Maintenance
  • Final Report

Tools

Common Tools for Data Mining

Survey from KDnuggets

Case Study

Predictive Lead Scoring

External Resource

Conceptual

Technical

Reach Me Out

Arga Adyatama

github.com/Argaadya

Visit Algoritma Official Website

algorit.ma

Thank You